CHICAGO and NEW YORK, June 29,
2020 /PRNewswire/ - As the U.S. works to recover from
the COVID-19 pandemic and the corresponding economic dislocation,
some industries will naturally rebound quickly as distancing
measures lighten, according to a new report from BMO Economics.
In the report, titled "America's Post-Pandemic Economic
Prospects," BMO's economists identify sectors which are likely to
rebound and grow strongly in the new environment, along with others
that may lag and have difficulty returning to original levels.
"While there are serious challenges ahead for the economy, there
are also important reasons to remain positive," said Doug Porter, Chief Economist, BMO Financial
Group. "While some sectors will face persistent challenges as a
result of the shutdowns and distancing measures, at the same time –
in classic creative destruction fashion – there will be some
sectors that strengthen and step into the gap.
"The main conclusion is that economies are resilient, and people
and businesses can be incredibly resourceful in the face of
challenges; don't underestimate the ability to recover from this
tough period," concluded Porter.
"Our business customers are adapting to the challenging times,
in some cases even transforming their operations to help their
local community, all while still working tirelessly to keep their
operations moving forward," said David
Casper, U.S. Chief Executive Officer, BMO Financial Group.
"Their optimism and their entrepreneurial spirit are critical in
leading our economy to better days."
"The recovery from the 2020 recession can be seen as a slow
stair climb up after a fast elevator ride down," according to
Michael Gregory, Deputy Chief
Economist and Head, U.S. Economics, BMO Capital Markets. "These
'stairs' are fabricated from the various factors delaying full
recovery for some businesses and industries, while denying it
altogether for others. However, helping us up these stairs are the
massive amounts of fiscal and monetary policy support."
The report identifies industries that are expected to
meaningfully outperform in a post-pandemic world, including:
- Health care and social assistance
- Information and cultural industries
- Food and beverage stores
- Warehousing and storage
Industries expected to significantly lag behind include:
- Air transportation
- Accommodation and food services
- Arts, entertainment and recreation
- Mining (including oil and gas extraction)
The full report can be found at
BMO subject matter experts have been constantly monitoring the
developments around COVID-19, delivering insights to help make
sense of what this means for businesses and the economy. Continue
to follow us by visiting bmocm.com/covid-19-insights for
more up-to-the-minute information. Subscribe to BMO COVID-19
Insights for a podcast of select reports, conference calls and
About BMO Financial Group
Serving customers for
200 years and counting, BMO is a highly diversified financial
services provider - the 8th largest bank, by assets, in North
America. With total assets of $987 billion as
of April 30, 2020, and a team of diverse and highly engaged
employees, BMO provides a broad range of personal and commercial
banking, wealth management and investment banking products and
services to more than 12 million customers and conducts business
through three operating groups: Personal and Commercial Banking,
BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group